On July 11, the U.S. House of Representatives passed the U.S. PIRG-backed College Cost Reduction Act of 2007 (HR 2669) by a vote of 273-149.

The bill will substantially increase the purchasing power of the nation’s premier need-based grant program, increasing the maximum grant amount by $100 for five years, beginning in 2008-9.

Championed by House Education Chair George Miller (Calif.), HR 2669 will make student loan debt more affordable by lowering the interest rate on student loans to 3.4 percent by 2012, and by capping loan repayment amounts to a reasonable percentage of a graduate’s income.

“Congressional leaders responded to millions of students and their families struggling to pay for college by making a major investment of $20 billion dollars in federal student aid programs,” said U.S. PIRG Higher Education Advocate Luke Swarthout. “We look forward to working with the Senate leadership to pass this bill later this summer and urge the president to sign it quickly so we can begin solving the college affordability and access crisis in the country.”